Out Fox the market with misunderstood, high reward opportunities
The service has a goal of finding the next multi-bagger stock while managing portfolio risk via diversification. We dig deep into misunderstood stock stories (such as beaten down SPACs) in order to provide conviction in holding beaten down stocks allowing investors to generate superior long-term returns.
We enjoy researching mis-priced gems with the potential for outsized gains because the market misunderstands the investment thesis and market opportunity or the company is undiscovered. We are looking for stocks that can double or triple in the next couple of years while controlling the risk via portfolio diversification with the similar risk/reward scenarios.
The stock opportunities range from cheap valuations based on growing cash flows to turnaround stories to catalysts not generally understood by the market. Anytime we find a stock with substantial upside potential, we will alert subscribers to the opportunity and discuss in detail the potential for outsized gains.
The concept has had plenty of success stores, like AMD, SodaStream or recently LendingClub, or in some cases saving investors money via negative calls on cannabis stocks such as Aurora Cannabis:
The key to all of these investing calls were the corresponding call to exit a position. Investors need more than when to buy a stock, but the conviction to hold through ups and downs. The SodaStream call doesn't work to the same extent, if investors sold after the first 100% gain. The stock remained a portfolio holding until Pepsi paid $144 per share in cash.
People landing on this page are already familiar with the stocks covered by Mark Holder and Stone Fox Capital with over a decade of experience writing on Seeking Alpha. What probably isn't known is that Mark has 25 years of investing experience and holds his CPA allowing for more detailed analysis of financial reports. In addition, Stone Fox Capital is regularly ranked as a top 50 financial blogger and top 2% of financial experts.
This service expands on the free research provided by Stone Fox Capital on a regular basis with a focus on portfolio construction and risk mitigation via daily updates and reactions to market moving news. In addition, we will provide real-time alerts on portfolio stocks along with other watchlist stocks along with daily chat to answer subscriber general questions on investing.
The goal is to "Out Fox" the market with market beating returns while reducing portfolio risk. Any single stock involves significant risks for investors. A portfolio of volatile stocks mitigates the single-stock risk allowing for a couple of big winners to more than compensate for the companies that disappoint.
AMD has remained the best pick for years now with a high success rate and a gain still reaching 900% since the original Bullish call back in May 2018. A lot of investors sold out at the recent 2023 lows below $80, but the upcoming boom had Out Fox recommending to continue holding or buying the stock. The repeated bullish calls give investors the confidence to remain in such stocks where most investors take profits far too soon:
Freeport-McMoRan is an example of a convicted position where the Out Fox model has ridden the EV and green energy wave to some large gains for the copper miner. The model cashed out some large gains along the way, but the majority of the position is currently up 250% from a Buy just above $10 back in early 2021. The Out Fox model often gets into these positions early so that large gains are only the beginning:
Stitch Fix is a prime example of a stock where Out Fox had investors buying the weakness during March 2020. The stock gained 300% before the model told investors to sell shares on the surge back in January:
Members were alerted via chat to sell shares of SFIX when the stock topped $105. Readers of public articles didn't get the same alert:
Another prime example of the Out Fox service is the changing ratings reflective of the stock price. With Roblox, members were told to Sell shares above $100 (not captured in this chart) back in late 2021 and later investors were told to Buy the shares in the mid-$20s, including the below call at $27:
A prime example of Out Fox investing is the conviction behind positions. SFC has been bullish on the airlines and cruise lines since after the stocks were crushed by the covid shutdowns. Royal Caribbean (RCL) is a prime example of a cruise line where conviction kept members in a position to benefit on the recent 100%+ upside form the lows. A lot of investors sold the stock prior to this rally and our fundamental research keeps us positioned in airline stocks now for a similar rally:
A big pick that made 145% in 2021 was Beauty Health after a Buy rating was assigned at $10.51 prior to the SPAC deal closing. The Out Fox model exited the position at $27 before Beauty Health ultimately crashed back below the recommended buy point:
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Made more on investing than any other group I have belonged too. Always great picks.
Good value for a reasonable price
I have followed Stone Fox Capital (SFC) for more than a year. He finds companies that have good earning potential at a very early stage. He finds good value in this overpriced market. He recommended the companies that were down and out when no one was suggesting to buy them. He waits for the value price. To name a few that I remember…. GNOG, UA, LC, BIDU, SFIX, SKIN, AMD, WFC, SAVE, GLUU, FCX, TWTR and many more. As his finds are early (before market realizes the potential), some will go down initially, so plan accordingly. Speak to him on chat and see his charts and reasons for recommendations. Many times he has identified upward trends correctly and you never get those entry points again. Dollar-Cost Averaging help as no one can predict when the stock will start running. I have seen many of his recommended stocks double within one year and some in weeks. Refer to his model portfolio.
As the name suggests, the Out Fox model and approach focuses on picking stocks ahead of the market. Results back this up - with an overall gain of 70% in just 18 months since the service was launched. The focus is on quality (currently 18 stocks in the core model) where conviction is greatest - rather than having too many, constantly changing stocks. However, that is not to say the service is not dynamic - as Out Fox (and knowledgeable chat contributors) are constantly monitoring and advising on market developments - and sharing insights and analysis on a wider range of stocks also. I joined the service in early 2021 as a relative novice who had made some investment blunders with my own picks. As a member of Out Fox, I have learned so much and have a lot more confidence in my investments. I am delighted with all aspects of the service to date. Out Fox has so far been a game changer for me. Being prompted what and when to buy, top-up and sell - ahead of the market - is well worth the subscription. A complete service for experienced investors and beginners alike.
This is a relatively new service provided by an author I had been following on SA for a couple of years. Mark gives easy to understand reasoning for his picks and moderates a friendly, inclusive chat room where he answers all questions quickly. The bottom line. Over the course of my 3 month (so far) membership, his picks in my portfolio are up 16% with only one in red (-2%). And these stock purchases were spread out over the 3 months, some in the last week. Very satisfied with the service.